Game developers cry foul as axe falls on Screen Australia fund

Karl Quinn

Which way now? Game developer Trent Kusters says it would not have been possible to get his game Armello off the ground without the help of the Screen Australia fund that has now been axed. Photo: Ken Irwin

Australia’s game developers have blasted the federal government's budget decision to axe a fund established just over a year ago to help the industry recover from a post-GFC contraction that saw it shed more than half its jobs.

We’re just getting back on our feet after a massive industry collapse in 2009. To have this happen now is really devastating.

Trent Kusters

‘‘We’re just getting back on our feet after a massive industry collapse in 2009,’’ said game developer Trent Kusters. ‘‘To have this happen now is really devastating, just as we’re getting back on the map internationally.’’

Antony Reed, chief of the Game Developers’ Association of Australia, said the decision would ‘‘stifle growth’’ in an industry that has a turnover in the region of $300 million annually but does not enjoy the tax concessions that apply to television and film production.

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‘‘I think someone saw the word ‘games’ and put a red line through it, based on an antiquated perception of what the games industry is,’’ Mr Reed said. ‘‘We are supposed to be a knowledge economy but the government has elected to go down another path.’’

In Tuesday’s budget, the federal government announced cuts to Screen Australia totalling $38 million over four years, including a cut in its baseline funding of $5.2 million next financial year, rising to $7.3 million in 2016-17.

Government funding will drop from $100.8 million this financial year to $90.3 million next year, falling to $85.1 million in 2017-18. Steep as that is, it is some way short of the 50 per cent cut recommended by the Commission of Audit. But it will bite especially hard in the games sector.

A three-year, $20 million Australian Interactive Games fund announced by former Labor arts minister Simon Crean in March 2013 has been axed entirely. The fund was due to allocate its remaining $10 million next financial year, but that money is no longer available.

Mr Kusters said the impact would be felt broadly, just as the benefits of the fund had been widely shared.

‘‘Everything touches everything,’’ he said. ‘‘Screen Australia money has helped us develop trailers for our game Armello, they helped us travel overseas to make industry contacts, they’ve helped us develop our website.’’

Armello is something of a poster child for the local gaming community. Developed by a profit-sharing co-operative called League of Geeks, it recently raised $305,000 through crowdfunding site kickstarter.com, having set a target of $200,000. Mr Kusters said ambitions for the game, which is to be launched early next year, are significant.

‘‘It’s planned to be a multi-million dollar game, we’re releasing it in nine languages, and right now we’re talking to major international partners about releasing it worldwide.’’

Screen Australia has contributed $95,000 to the game’s development and marketing but, said Mr Kusters, "without Screen Australia’s help we wouldn’t be here".

He added that the spin-off benefits of the agency's funding were almost impossible to calculate.

"The number of seeds this project is planting is crazy," Mr Kusters said. "Without the fund, how can we lead by example if there’s no way for people to follow us?’’

Screen Producers Australia executive director Matthew Deaner labelled the cuts to Screen Australia "disproportionate", and also registered concern about the cuts to the public television broadcasters, which are among the biggest clients of his body's members.

"The ABC, SBS and Screen Australia are essential partners to the independent production sector in Australia," Mr Deaner said. "We recognise the need for efficiencies, but they will take time to implement and we must make sure that the search for efficiencies does not undermine core business."

The actors union Equity also weighed in, with director Sue McCreadie observing that "the arts has taken more than its fair share of pain" in the federal government's first budget.

13 comments

I'm not surprised to see this go. That it even existed at all was a miracle in itself and far less than we needed. There are so many barriers to the games industry in this country, it's no surprise that so many developers are setting up overseas, including my own company, which is based in the UK. Not to mention all the big, successful studios we used to have that had to shut down for financial reasons.

For an industry that's now far bigger than movies and tv, you'd think that our Governments of various colours would want to see more of that revenue flowing into this country, but it seems that unless we dig it out of the ground, they're just not interested.

Commenter

Sturt J

Location

Brisbane

Date and time

May 15, 2014, 1:51PM

Considering the gaming industry is going to be worth over 100 billion dollars in 2014 it's VERY short sighted indeed of this government to do this, when they threw billions over the last couple of years in the car industry for WHAT ??

Commenter

Reality check

Location

Brisbane

Date and time

May 15, 2014, 4:04PM

So Australians could buy Australian cars built by Australians for Australians.

Commenter

Suburban Aussie Guy

Date and time

May 15, 2014, 8:24PM

OK, my little pets. Take the risk yourself like every other business, the taxpayers have had enough of snouts in the trough.

Commenter

Reg

Date and time

May 15, 2014, 3:55PM

Oh, please. There are still lots of snouts in the trough guzzling a lot more money than what was going to game tech.

Commenter

andye

Location

nethead

Date and time

May 15, 2014, 7:21PM

What a shame that the same standard doesn't apply to school chaplains who get a cool 245 million to spread similar fantasy fiction.

I'm not disagreeing with you but if these studios were indeed big and successful, why did they have to close?

Commenter

Usual suspect

Date and time

May 15, 2014, 5:59PM

Most of the LARGE ones were branches of international companies. So when the Australian dollar were stronger than, lets say the American dollar, it was financially more benificial to move all development back to the USA or Canada or even Japan.

Many countries were also handing out tax insentives as a draw card for companies to relocate to them. The AUS designers/developers/coders/etc did not lay down.but started to do their own thing with an almost ZERO budget but at a certain point you need more capital to finalize/produce/advetise your product -- and that is where that few dollars from the goverment came in

Commenter

Nicolai

Location

Melbourne

Date and time

May 15, 2014, 8:20PM

So people, like my son, who works in this industry have no future in Australia.First the industry was destroyed because of the GFC -- strong Australian dollar forced international companies to close their Australian branches forcing the majority of people into unemployment. These people started new indie groups BUT needs some assistance to set-up shop -- therefore the minuscule amount given to the industry over the past 2 years and now NOTHING.Don't the government realize that this is n multi billion industry that can generate a large income for Australia that they just killed off ???